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Energy

Energy

Energy

Mini Polypropylene Futures

Price risk exists at all stages where materials are bought and sold in an industrial supply chain.The risk occurs from the timing difference between production and selling of the products. The risk is greater when the supply chain is not fully integrated. Price volatility is a significant issue for the plastics industry and it exposes all participants to risk.

 

Contract

Parameters

Contract Symbol

DPPMM

Underlying

Polypropylene (PP)

Contract Size

5 tonnes per contract

Notional Contract Value

USD 5 X Polypropylene (PP) price quoted

Trading Currency

USD

Settlement Currency

USD

Price Quote

USD per tonne  

Tick Size

USD 1

Tick Value

USD 5

Settlement Basis

Cash Only Settlement Contract

Final Cash Settlement Price

The Final Settlement Price Methodology shall be derived from the conditions listed below on the underlying 25MT contract: (a) Value Weighted Average Price (VWAP) of all trades executed in last 10 minutes of the Last Trading Day (b) If no trades have been executed in the last 10 minutes, the VWAP of last 15 trades executed during the Last Trading Day provided 15 trades are executed (c) If 15 trades have not occurred, the VWAP of all trades executed during the Last Trading Day (d) Where there are no trades executed during Last Trading Day, the price midway between outright bids and offers during the last 10 minute period

Price Basis

In warehouse (INWH), duty unpaid at DGCX Approved Warehouse delivery at seller's option

Quality Specification

General Purpose Fibre (Raffia) extrusion graderaffia

Last Day of Trading

Three Trading Days prior to the Delivery Month

Trading Days

Monday through to Friday

Trading Hours

07:00-15:00 Hours UAE time (GMT+4) (for plastics)

Trading Months

Up to 12 calendar months at any time

New Contract Listing

Business day immediately following the last trading day

Max Order Size

200 contracts

Maximum Open Position Limit

As determined by the Exchange from time to time

EFP / EFS / Block Trades

EFS, EFP, Block trade facilities available with minimum permitted block size of 50 lots

Time Limit for EFP / EFS / Block Trade Registration

Up to 5 minutes after cessation of trading on any trading day

Initial Margin based on SPAN

USD 200 per lot (subject to change)

Extra Margin

At times of high volatility, an extra margin, as deemed fit by the Exchange, may be charged.

Calendar Spread Margin

100% benefit is offered on calendar spread positions

Daily Price Movement limit

No Limits - Note 1*

Tender Margin

10 times of the Initial Margin and is applicable from the first day of the Delivery month.

Note 1*: There will be no limits on intra-day price movements, however to restrict data-entry errors the system will not allow entry of orders having prices higher or lower than US$50 as compared to the Previous Close Price. Exchange shall relax the intra-day price range for the prices of the contract approaching the US$50 limit

 

Delivery Mechansim Details

 

Delivery Type & Minimum Delivery Unit

Compulsory Delivery

Delivery Instrument

Warrant

Notice Day

Last Day of Trading

Delivery Notices

At the Notice Day, Sellers must submit Delivery Notice, indicating:  

Delivery Day

Two Business Days after the Notice Day

Documents

A copy of the producer’s Certificate of Analysis for every production batch making up the lot, duly evidencing that each lot is fully traceable, must accompany every lot delivered into a DGCX Approved Warehouse. The Certificate of Analysis must state the producer, grade, batch number and test results for the batch    

Delivery Tolerance

Weight tolerance of +/-0.8% on standard Delivery Unit of 24.75 tonnes

Packaging

Each delivery unit shall consist of 990 X 25 kg bags comprising 18 pallets each carrying 55 such bags stacked symmetrically in 11 layers of 5 bags per layer  

Production Batches

Each Delivery Unit shall consist of no more than 2 production batches

Polymer Age and Delivery Time

PP must have been produced no more than 17 months prior to the Delivery Day and arrived at the Approved Warehouse for no longer than 6 months after production date

Test Method 

Values

ISO 1133

2.5-4.0

ISO 527

29 Minimum

21CFR 177.1520 (c) 1.1

Compliant

EU Directive 2002/72/EC and its amendments

Compliant